Third Paycheck in a Month – Take a Detour

Published On August 28, 2012 » 382 Views» By IWJ » Finances, Life
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What to Do With a Triple Payday Month

Deborah Sweeney

It’s that time again: the much anticipated triple-payday month! It happens a few times a year. There are months that provide three paychecks to all the hard workers getting paid via a biweekly payment schedule this month. For the average employee, a three-payday month typically means treating the family to a nice dinner or splurging on some new stylish work ensembles at J. Crew. But this time around, why not try something different? Why not try a foreign concept (that everyone is guilty of forgetting about) of putting that extra cash away for a rainy day in a savings or checking account?

Here are four smart ways to utilize those extra paychecks:

Give back to the business.

If an entrepreneur is reaping the benefits of the three-payday month, what better way to say thank you to the business than giving that money right on back to where it came from in the first place. There is always an abundance of things that can be purchased to aid a business. Maybe it’s time to bring on a PR team or invest in some social media advertising. Or maybe just what the office needs is a new mini fridge. Giving back to employees and the office directly is a great way to show the team just how much their work is appreciated.

Save it for an emergency.

According to a lifeinc.today.com article, only 25% of people have enough money stored away for six months of savings (the recommended amount). As the article suggests, six months may not even be enough to get a person by with the state of the current economy and unemployment rates. Today, finding a job may take a bit longer than six months time. Just having something tucked away will be a huge relief later on. Nobody wants that nagging ‘what if something bad happens’ voice in their head. Rest easy and put the extra cash away.

Save it for savings.

Besides financial emergencies, there are always additional reasons to save. College fund, anyone? Putting one child through college fully takes mounds of savings and planning, let alone two, three, or four. But sending children through college with no financial debt to pay on the other side of graduation is one of the biggest gifts a parent can give.

And when the kids are away Mom and Dad should get their turn… retirement! This is another great savings to start creating in order to cushion up those golden years as early as possible.

Tend to some debt.

Just like a zany uncle, everyone’s got debt of some sort. There are always credit card and student loan bills to be paid, many with large interest rates attached, so take this month’s opportunity to take care of some of that. Getting to those payments now will free up some money down the road and that’s when the family will be treated to a gourmet dinner and that perfect-fit pencil skirt will be whisked away in a shopping bag.

Try some of these alternative methods to handling that paycheck and reap the benefits of a well saved dollar down the road!

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Deborah Sweeney is the CEO and owner of MyCorporation, an online filing services company that specializes in incorporations and LLCs. Find her online at mycorporation.com and on Twitter @deborahsweeney and @mycorporation.

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